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Retirees in the Civil Service Retirement System will receive a 2.3 percent boost to their pension checks in 2008.

The government unveiled next year's cost-of-living allowance Wednesday. It is based on the change in the Labor Department's Consumer Price Index for urban wage earners from the third quarter of one year to the same quarter of the next.

The 2.3 percent boost is smaller than the 3.3 percent increase for 2007. It also falls below the 2006 increase of 4.1 percent, which was the highest since 1991.

The COLA will not be the same for retirees in the newer Federal Employees Retirement System, who will receive a 2 percent adjustment. FERS retirees also receive Social Security benefits, which are calculated by the change in the CPI (2.3 percent).

FERS retirees only get the cost-of-living allowance if they are at least 62 years old.

CSRS annuitants must have been retired one full year to receive the full COLA. If they do not meet that threshold, they receive prorated annuities, amounting to one-twelfth of the applicable increase for each month they've received their pension.

Jill Crissman, a spokeswoman for the National Active and Retired Federal Employees Association, said Wednesday that the annual COLA is essential to ensuring the income security of federal annuitants. "This year's COLA -- the smallest in four years -- is moderate despite retirees experiencing significant rises in food prices and medical costs," she said.

Federal retirees will receive their first checks reflecting the increase in January 2008.

The 2.3 percent figure does not apply to active federal employees, who receive a pay hike determined by Congress and approved by the president. Lawmakers still are considering a 3.5 percent raise, 0.5 percent above the president's fiscal 2008 budget request.

If civilians get a 3.5 percent raise, the Federal Salary Council recommended it be allocated between an across-the-board boost of at least 2.5 percent and a 1 percent locality pay hike. With a 3 percent raise, the breakdown would be 2.5 percent and 0.5 percent. The Office of Personnel Management has projected locality pay rates based on either scenario.

COMMENTS

• Why are we only getting 2.3% CSRS COLA increase? We are entitled to the change in 3rd quarter averages of the Department of Labor Consumer Price Index (CPI) for urban wage earners and clerical workers. That change is 4.5%, not 2.3% . How do we unite on this campaign? Deborah Reppenhagen Posted January 18, 2008 12:11 AM
• J.W. I do not know your circumstances and can only take clues from your response, but one thing you said changed my entire thought process on your comment. Going on “I can not touch my TSP and IRAs for 3 more years”, makes me think you must be approximately 56 years old and change. That, to me, is a special class of retirees not bound by the same constraints I see in a later retirement. While so small a COLA increase may be difficult in times like these, what with gas and milk prices raising daily; you have to admit, being retired at 56 MUST have SOME advantages. If you are FERS (which I can’t be sure of) you are receiving the SSN supplement which I will never see. If you are CSRS, you’re still receiving 150% of what they’re going to give me on retirement (base entitlement). I’m not trying to turn this around to my pity party, burst your bubble of outrageous indignation, and realize that living on a fixed income is difficult at any age; but it sounds as if you took advantage of a great benefit of civilian service (early retirement) and, frankly, seem a tad ungrateful. And while I am not one who dreams of retiring so I can go out and get another job, I think I would have addressed some of those inabilities to access the TSP & IRA funds during my retirement planning and made arrangements to compensate for their lack. Were you not aware of that time gap between your retirement and your ability to access them? At the very least, if you are not disabled, you could at least try to supplement your income with something you like to do for the interim. Waiting to access them will only increase their value. Evidently deliberately you chose to exit when you did. If a disability caused your early retirement, then I apologize for any insensitive remarks. Otherwise, I recommend you be thankful, enjoy your health while you have it and your retirement while you can. Tip off Posted November 20, 2007 2:31 PM
• The government officials in charge of personnel issues are more concerned about saving funding from the ones that need the increases more than being fair about our retirement raises. This is another slap in the face to our retirees that have served our country for many years. The 2.3 COLA is a joke compared to the real world increases in products and services we have to endure. We should at least follow the COLA for the CSRS employees. The Windfall Elimination Tax, which only apply to certain CSRS and Railroad workers, is also a way of robbing us CSRS retirees. Congress don't have this kind of restriction on the calculation of their retirement. If they were under the same rules as we are in CSRS and Social Security Retirements, they would make some very positive changes quickly! But what do you expect out of a legislative body that votes their own raises in. That is outrages also! Stan Hardcastle Posted November 15, 2007 10:07 AM